Sydney Retailing (buyer) and Troy Wholesalers (seller) enter into the following transactions May 11 Sydney accept delivery of $40,000 of merchandise it purchases for resale from Troy: invoice dated May 11, terms 3/10, 1/90, FOB shipping point. The goods cost Troy $30,000. Sydney pays $345 cash to Express Shipping for delivery charges on the merchandise May 12 Sydney returns $1,400 of the $10,000 of goods to Troy, who receives then the same day and restore then to its Inventory. The returned goods had cost Troy $1,050. May 20 Sydney pays Troy for the amount owed. Troy receives the cash imediately. (Both Sydney and Troy use a perpetual inventory system and the net method.) (Both Sydney and Troy use a perpetual Inventory system and the net method.) 1. Prepare Journal entries that Sydney Retailing (buyer) records for these three transactions. Debit Credit No Date Answer is complete but not entirely correct. General Journal Merchandise inventory Accounts payable 30,000 1 May 11 30,000 345 2 May 11 Merchandise inventory Cash 345 3 May 12 1,400 Accounts payable Merchandise inventory O 1,400 4 May 20 38,600 Accounts payable Cash Merchandise inventory * O 37 442 1,158 2. Prepare journal entries that Troy Wholesalers (seller) records for these three transactions. Answer is not complete. No Credit General Journal Date Debit 40,000 1 May 11 Accounts receivable Sales > 40 000 2 May 11 Cost of goods sold Merchandise inventory O 30.000 30,000 > 3 May 12 1.400 Sales returns and allowances Accounts receivable 1,400 4 May 12 1,050 Merchandise inventory Cost of goods sold O 1,050 5 May 20 Cash Sales discounts Accounts receivable 37.442 1,158 X 38,600 S